Medium-term concerns about scale of QE exit strategies persist

British investors are currently battling between two conflicting forces.

On the one hand they see unemployment continuing to rise, while many corporates remain in distress and medium-term concerns about the scale of quantitative easing and an exit strategy persist. On the other hand, this has not stopped a 40% rise in the FTSE 100 since March this year. This recovery has been focussed on the potential for economic recovery, with industrial and macroeconomic data improving over the last three to four months. This has been assisted by the corporate sector which, while putting out poor figures, is providing quite buoyant outlooks for businesses over the next six...